As the 2011 year comes to a close, many are wondering whether 2012 will be a better year for mortgages and foreclosure rates. While nothing is certain in this turbulent economy, recent predictions released be TransUnion are bringing some rays of hope for the New Year.
New Year News
A recent report suggests that things may begin to look up for homeowners struggling with mortgage debt in the New Year. It is predicted that the percentage of mortgage delinquencies is expected to decline for much of 2012. More specifically, the second through fourth quarters should show a satisfactory decrease in the number of homeowners who become delinquent and, therefore, risk foreclosure. However, the number of delinquencies will remain high for the first quarter, mostly those that are left over due to postponed foreclosure proceedings during this holiday season.
TransUnion expects to see a 5 percent decrease in mortgage delinquencies during 2012. In a statement, Tim Martin, group vice president of U.S. housing in TransUnion’s financial services unit said, “Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners’ ability and willingness to pay their mortgages.”